How report sale of rental property, where enter 1099-s?

[Critter-3]

Yes ... you prorate the sales price and cost of sale. 

[zenmster]

Do i enter the sale price and the expenses in more than just the depreciation section?  again I am using TT202 DESKTOP MAC

[zenmster]

for example, do i enter realtor commissions not only in the depreciation section but here as well? 

[Critter-3]

@zenmster 

NO ... you will enter the rental sale in EITHER   the rental asset section   OR   the sale of business property but NOT BOTH. 

[zenmster]

Ok. I entered in the rental asset section but why after entering the realtor commission fees does my refund not go up even one $1? ;O 

[zenmster]

and when you refer to "rental assets" section you mean this? "Rental Properties and Royalties?" Where the depreciation data/entries are?

[zenmster]

this must be online tt because I not seeing it on desktop tt2021

[Critter-3]

Yes ... when you start the rental section it will ask if it was sold and then follow the screen instructions in the asset section.   FOLLOW the interview screens in the order they are presented ... do not skip about. 

[zenmster]

i'm not skipping but i am very stressed. Unfortunately desktop isn't completely clear - at least to me on all this-even with step-by-step walkthroughs- I entered things like realtor commissions in the section circled in the attached screen shot - right? wrong? 

What is throwing me off - is under "Expenses" - a few steps later, TT refers to this as "[Enter] COMMON EXPENSES" and realtor commissions aren't common, are they? 

What is 

[Critter-3]

Ok ... DEPRECIATION ...  you have not started this section yet.   You need to visit and read each and every section in this area ... read the screens carefully.  ALL the sales expenses will be reported with the sale of the asset ... they are NOT common expenses.  

Have you been depreciating the property in the past ?   Is this the first year you have use the TT program ?   If you have NOT been depreciating the propery over the prior years of rental use then RUN to a local tax pro to get this massive error corrected so you don't pay double the taxes on the sale. 

[Carl]

The Rental Income section and the Rental Expenses section have nothing to do with the sale of rental property. Nothing concerning the sale is entered in either of those sections.  So if you've entered anything in those sections that relate to the sale of the property, remove it. Any money received due to the sale is *not* rental income. Any expenses incurred/paid due to the sale is *not* a rental expense. As you work through the below instructions (I can't stress this enough) Read The Small Print on each and every screen. It does matter.

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2021". Select it. After you select the "I sold or otherwise disposed of this property in 2021" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even if it's zero. Then you MUST work through the "Sale of Property/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1 on some assets. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1 on some assets.

Basically, when working through an asset you select the option for "I stopped using this asset in 2021" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.